State of the Foreclosure Market in Hamden 2011

Recent headlines have stated that foreclosure homes accounted for 20% of all sales last year. That grabbed my attention, so I thought I would check to see how Hamden compared to the national statistics. According to the Greater New Haven Association of Realtors, 358 single family homes sold last year in Hamden. (That's up from the 354 I previously reported. Seems like some agents were slow to report their end of year closings.) Of the 358 Hamden sales, 44 or 12% were foreclosed properties. In addition, 28 or 8%, were short sales, which probably would have resulted in foreclosures. Added together, we have our 20%.

These are sobering statistics for an area that has some job protection from the universities in the area, which are the major employers. What it may reflect is the consumer's inability to obtain credit from other sources. With lines of credit reduced or cut entirely, the consumer has very few options, when money runs low.

To make matters worse, we are hearing that there may be a new wave of foreclosures in 2012. Many banks halted foreclosures last year due to questions about improper foreclosure procedures. Now that some of these issues have been addressed, the banks are ready to move forward to reduce their inventory. Foreclosures are a blight on their balance sheets.

What does this mean to our sellers? Houses have to be priced to perfection in 2012, if they hope to have a chance to sell. A seller can increase the value of his/her house to some extent, with landscaping, staging, and good maintenance. Few buyers, however, will pay a premium for amenites they expect to find in a home. That said, the market seems stronger in Hamden this January. Inventory is seasonally low at 251 houses currently for sale. We have 27 homes on deposit and 13 sales this month. Compare this to 7 sales at the same time last year, and you can see there is some energy here. We can only hope that the momentum carries the market forward and up this year.